Is Cardinal Health (CAH) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One stock to keep an eye on is Cardinal Health (CAH). CAH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.31 right now. For comparison, its industry sports an average P/E of 18.71. CAH's Forward P/E has been as high as 15.59 and as low as 12.37, with a median of 14.12, all within the past year.Investors will also notice that CAH has a PEG ratio of 1.40. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAH's PEG compares to its industry's average PEG of 2.12. CAH's PEG has been as high as 1.55 and as low as 0.86, with a median of 1.08, all within the past year.Finally, our model also underscores that CAH has a P/CF ratio of 14.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.14. Within the past 12 months, CAH's P/CF has been as high as 27.97 and as low as 13.22, with a median of 17.87.Another great Medical - Dental Supplies stock you could consider is CONMED (CNMD), which is a # 2 (Buy) stock with a Value Score of A.Shares of CONMED are currently trading at a forward earnings multiple of 14.35 and a PEG ratio of 0.75 compared to its industry's P/E and PEG ratios of 18.71 and 2.12, respectively.CNMD's Forward P/E has been as high as 31.46 and as low as 13, with a median of 15.49. During the same time period, its PEG ratio has been as high as 1.10, as low as 0.51, with a median of 0.71.Additionally, CONMED has a P/B ratio of 2.29 while its industry's price-to-book ratio sits at 4.47. For CNMD, this valuation metric has been as high as 4.32, as low as 2.05, with a median of 2.56 over the past year.These are just a handful of the figures considered in Cardinal Health and CONMED's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAH and CNMD is an impressive value stock right now.Just Released: Zacks Top 10 Stocks for 2024Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardinal Health, Inc. (CAH): Free Stock Analysis Report CONMED Corporation (CNMD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks